MYNORTHWEST NEWS

DoorDash to implement new fee amid frustrations with Seattle City Council

Jul 31, 2024, 3:16 PM

Photo: A person demonstrates making a delivery with DoorDash as a Dasher in April 2024....

A person demonstrates making a delivery with DoorDash as a Dasher in April 2024. (Photo illustration: Emily Dulla, Getty Images for DoorDash)

(Photo illustration: Emily Dulla, Getty Images for DoorDash)

DoorDash is implementing an additional $1.99 fee on certain long-distance orders, the company announced via a news release on Wednesday. In addition, DoorDash said it is implementing a $1.99 minimum service fee for orders from DashPass subscribers. DoorDash said the fees are needed because the Seattle City Council (SCC) has yet to compromise on new minimum wage increases in effect.

The new fees will start on August 1. The extra money will go toward orders that require more effort to complete, according to DoorDash. It will also help offset the costs of expensive deliveries under the City of Seattle’s minimum payment ordinance.

The ordinance went into effect in January and gives app-based workers the right to minimum pay based on the time worked and miles traveled for each offer, the right to upfront disclosures of offer information and the right to receipt and payment records. It also gives workers the right to access the network platform without limitations, the right to not be penalized for limiting availability or refusing offers and the right to cancel an offer with cause, according to the City of Seattle’s website.

With the ordinance, companies either have to pay a minimum per-minute amount of $0.44 and a minimum per-mile amount of $0.74 or pay a minimum per-offer amount of $5.

More on DoorDash: Under pressure from cities, DoorDash steps up efforts to ensure its drivers don’t break traffic laws

The company said a coalition of local drivers has offered three solutions to remove or reduce delivery fees in Seattle and still allow drivers to earn more than the city’s minimum wage. However, members of the council rejected the proposals without further negotiations.

DoorDash sent a statement to KIRO Newsradio that reads:

Due to Seattle’s broken delivery pay law, DoorDash continues to lose money in the market despite instituting a regulatory response fee. Despite this, we have held off on further increasing fees for the last six months while the council debated a compromise bill to reduce costs of facilitating delivery and still guarantee workers earn at least minimum wage plus additional pay for expenses.

Unfortunately, certain members of the council have let us know that they are unwilling to compromise, and have rejected legislation that would have drastically reduced costs, eliminated the $4.99 regulatory response fee, and helped increase earnings for Dashers and local businesses.

This inaction has left us no choice but to implement additional small fees on certain orders in the Seattle market to to remain operationally sustainable in Seattle. It is our sincere hope that as local Dashers, businesses and consumers continue to struggle under this ill-conceived law, these councilmembers will reconsider their commitment to total inaction.”

The Seattle Times reported in June that companies were frustrated with the SCC’s seeming lack of urgency to vote on a lower pay standard for delivery drivers.

“Tens of thousands of workers are like, what’s happening?” Hannah Sabio-Howell, communications director for Working Washington, told The Seattle Times in June. “It’s a weird and obscure purgatory we’re in right now. We’d like to be collaborative, and we’d like to be helpful.”

More coverage: Will the minimum wage for delivery drivers in Seattle be lowered?

Director for Working Washington: ‘DoorDash is extorting Seattle’

However, on Tuesday, Sabio-Howell told KIRO 7 that DoorDash is extorting Seattle and has never shown numbers to explain why the fees are necessary.

“(DoorDash) undermines its own credibility when it tries to say things like this new $2 fee, that previous $5 fee, are necessary for operational costs,” Sabio-Howell told KIRO 7. “I think it’s more than obvious that these corporations can pay their workers a living wage, and it’s a political choice not to.”

KIRO 7 reached out to the SCC for comment, which told them on Tuesday, “At this time the council members are passing on interview requests because they have no substantive updates to share. Procedurally the legislation is in a holding pattern.”

Contributing: KIRO 7

Julia Dallas is a content editor at MyNorthwest. You can read her stories here. Follow Julia on X here and email her here.

More MyNorthwest news

Please follow our Community Guidelines

MyNorthwest News

kenmore officer slash...

MyNorthwest Staff

Kenmore officer slashed with knife while arresting suspect near Shoreline grocery store

A Kenmore Police officer was slashed in the arm by a suspect threatening employees and officers with a knife outside of a Shoreline grocery store on Friday.

40 minutes ago

A photo of Phillip Wayne Pitts during his arrest in Seattle. (Photo courtesy of the U.S. Marshals S...

MyNorthwest Staff

U.S. Marshals arrest man wanted on attempted child rape charges in West Seattle

A 50-year-old man was arrested Tuesday on a felony warrant for attempted rape of a child and communicating with a minor for immoral purposes.

2 hours ago

homegrown seattle close...

Jason Sutich

Homegrown to close remaining Seattle-area stores after years of financial challenges

Homegrown is preparing to close its downtown Seattle and Mercer Island sandwich shops as the company shifts its focus to catering.

2 hours ago

wa election night...

Charlie Harger

Harger: 6 things I’m watching on election night, starting with a $250K check that would have been blocked 2 weeks ago

Drop boxes close at 8 p.m. sharp, and I’ll be on the air at KIRO Newsradio and YouTube Live from 7 p.m. to 10 p.m. These are the six things I’m watching for.

3 hours ago

Mukilteo mail stolen...

Julie Berg, KIRO 7

Mukilteo police recover stolen mail addressed to local businesses

The Mukilteo Police Department said they arrested a suspect early Friday morning who was in possession of a large amount of stolen mail.

4 hours ago

monroe bird flu lake tye...

Julie Berg, KIRO 7

Monroe’s Lake Tye Park being monitored for bird flu after dead birds discovered

The City of Monroe is actively monitoring Lake Tye Park after multiple birds were found dead and others began showing symptoms consistent with avian influenza.

4 hours ago

DoorDash to implement new fee amid frustrations with Seattle City Council